Bhubaneswar : Franklin Templeton is an American Based Mutual Fund company who has decided to wind up six debt mutual fund schemes. Investors in these schemes will not be able to buy or sell these schemes anymore. It was a huge crisis for the Indian investors, There were total 20000 Investors from Odisha. They have invested Rs 700 Crore.
An Odisha based Company Wallet4wealth & his Team took the best decision before 6 months to this crisis and have withdrawn all funds invested in the mutual funds. They have advised their clients after doing hard Reaserch on 14 November 2019 . He has helped all their clients to switch all respective clients to safest fund .
Our city Correspondent has discussed with the person behind the right decision at right time and kept investors money safe . That is Odisha based renowned Financial Advisor Mr Trinath Lenka Managing Director, Wallet4wealth.
1.)How do you see the decadal stage of Franklin Templeton? Currently the investors are in stage of fear and shock?
👉Due to current pandemic situation , credit crisis fear is ahead by investors those are invested in credit papers through debt mutual funds. As more and more redemption came into these Franklin Templeton mutual fund schemes , Fund was unable to meet the redemption obligations so they have borrowed money within the limit prescribed . But when Franklin Templeton mutual Fund thought of they redeem more, investors will loose money on their money by way of M2M. So they have decided to shut down these 6 funds so that no investor will be entering and exiting from the fund . But when the invested papers will mature , they will pay back respective unit holders according to their share of investment in such fund. They do have shock this money is getting locked for long duration as they have not thought .
2.)What makes you aware before 6 months to withdraw the investors money! which comes back to you as a big achievement?
👉We at Wallet4wealth believe on quality research on our advised fund . When we do advise any fund to invest, we do hard to hard home work . In November 2019 , we found paper quality Franklin mutual fund invested was not matching our investor requirement includes our recommended funds . Particularly we are anticipating Vodafone May be defaulted in near term where these funds are having more investments into Vodafone papers . Other papers are also not that much of quality so we have decided to advice our clients to exit from those funds and park in quality funds and investment grade papers . And all investors are also supported our advice and switched their investment. Definitely it gives us more confident on our quality advice and research as big achievements.
3.)Can the current crisis be a great opportunity for stock market investors?
👉Current crisis may be there for few days . So stock market will be also volatile till we find everything normal .
4.)What are the perfect strategy to safeguard your mutual funds during this crisis?
👉Perfect strategy is to be vigilant on our investments and check from time to time on their portfolio what comes in or goes out . Measure the risk and take decisions.
5.)Do you think more numbers of foreign mutual fund companies will face the similar situation?
👉Franklin Templeton is an very old and renowned AMC in the world but they took bigger risk to provide higher return to their investors . I don’t think any other AMC is going to take such steps .
If any investor have any issues can contact :- Mr. Trinath Lenka, (Financial Advisor and Director Wallet4Wealth.) 9238000131/ 9776211080
